SBI Bank

With property rates increasing manifold and miscellaneous expenses taking a toll on savings, home loans offered by financial institutions pose as a strong pillar of support. Be it a traditional mortgage, or second mortgages in the form of closed end home-equity loan and open end home-equity line of credit, these are secured against the value of the property which is further determined by an appraiser from the lending institution. Thus, while almost all banks offer attractive home loans to the public, it is recommended to choose one smartly and by careful comparison. Whether you are looking for a financial support to buy a new house, repair the present one, or take care of other major expenses such as medical bills etc, find a lender that offers the best interest rates and other benefits.

SBI Bank Home Loan

SBI being one of the most revered and preferential financial institution in the country, offers the most attractive home loan service. The bank claims to be the largest mortgage lender in India, having aided over 30 lakh families to help them realize the dream of owning a home. They are known for their trustable service, and excellence and transparency in their offerings. With over 24,000+ branches and 1600+ members of a strong and dedicated Sales Team, SBI is a reputed and one of the oldest banks in the country. What sets them apart from other banks when it comes to home loans is the value of service that their customers enjoy, be it through a wide range of products, or low interest rates, no hidden costs, low processing fees, overdraft facility, and so on.

State Bank Of India Home Loan Eligibility Criteria for Salaried and Self-Employed Borrowers

All the documents must be self-attested. Lender may ask you for some more documents based on your overall profile.

SBI Bank Home Loans Interest Rates

SBI is known for its highly flexible and convenient interest rates offered at home loans. Whether you are availing the home loan as a term loan or as an overdraft (maxgain), the rate of interest varies a little but is highly convenient for people from all strata’s of the society. Thus, while the interest rate broadly ranges from about 8.30%- 8.60% in a term loan for people with different range of annual salaries, it ranges from about 8.35% - 8.70% if you take an overdraft.

For a salaried borrower: The loan options are conveniently divided into 3 salary ranges for both loan types for a salaried potential borrower looking for a home loan. There is also special interest rates offered to women borrowers. For a term loan, a person earning an annual salary of up to Rs 30 lakhs gets an interest rate of 8.35% p. a, above Rs 30 lakhs and up to Rs 75 lakhs gets interest rate of 8.35-8.40% p. a, and those above Rs.75 lakhs get 8.45-8.50% p. a. Women, on the other hand, get to pay lesser interest rate. Those women earning up to Rs 30 lakhs get the interest rate of 8.30% p. a, above Rs 30 lakhs and up to Rs 75 lakhs get 8.30-8.35% p. a, and those earning above Rs.75 lakhs get to pay 8.40-8.45% p. a.

When it comes to overdraft home loan, a person earning an annual salary of above Rs.20 lakhs and up to Rs.30 lakhs gets to pay an interest rate of 8.40% p. a, above Rs.30 lakhs and up to Rs.75 lakhs pay about 8.45-8.50% p. a interest rate, and those earning above Rs.75 lakhs and up to Rs.3 crores pay rate of 8.55-8.60% p.a. Women get attractive interest rates here as well wherein those earning above Rs.20 lakhs and up to Rs.30 lakhs get 8.35% p. a, above Rs.30 lakhs and up to Rs.75 lakhs get 8.40-8.45% p. a, and those earning above Rs.75 lakhs and up to Rs.3 crores get 8.45-8.50% p.a.

Those self-employed customers who are looking for home loan as an Overdraft get competitive rates as well. Men earning above Rs.20 lakhs and up to Rs.30 lakhs get 8.50% p.a, above Rs.30 lakhs and up to Rs.75 lakhs get 8.60-8.65% p.a, and those earning Above Rs.75 lakhs & up to Rs.3 crores get 8.65-8.70% p.a. Women borrowers earning Above Rs.20 lakhs & up to Rs.30 lakhs get 8.45% p.a, Above Rs.30 lakhs & Up to Rs.75 lakhs get 8.55-8.60% p.a, and Above Rs.75 lakhs & up to Rs.3 crores earnings get to pay 8.60-8.65% p.a of interest rate.

State Bank Of India Home Loan Types

SBI offers a range of home loans that suits the needs of every category of customers. The 5 home loan categories include the following:

Regular Home Loan

The regular home loan offered by SBI is one of the most convenient and recommended loan for customers looking for purchase of a new or under construction property, purchase of pre-owned houses, or even for carrying out repairs of the current house. These loans are offered at not only low interest rates with special concession for women borrowers but also with very low processing fee with no hidden charges and no pre payment penalty. The loan is also available as an Overdraft. The interest charges on the Daily Reducing Balance and the repayment of the loan is up to 30 years which poses as highly convenient.

Balance Transfer of Home Loan

Under this scheme, SBI offers its customers the facility of transferring their home loan from either a Scheduled Commercial Bank (SCB), Housing Finance Companies (HFCs) registered with National Housing Bank (NHB), or Private and Foreign Banks. One may even transfer through their employer’s if they are Central/State Government or their undertaking or Public Sector Undertaking. The condition is that the borrower needs to satisfy the given eligibility criteria for availing this type of home loan and has serviced interest and/or installment of the existing loan regularly.

NRI Home Loan

SBI enables all the Non Resident Indians (NRIs) as well to be able to invest in properties by availing a home loan scheme specially designed for them.

Flexiplay Home Loan

A great loan option for young earners is the Flexiplay home loan wherein the salaried customers can get access to a higher loan amount. The borrower can only pay the interest during the moratorium (pre-EMI) period, followed by moderated EMIs which increase during the subsequent years, thereby making it quite flexible.

Privilege Home Loan

The government employees can benefit a great deal from the Privilege Home Loan category offered by the bank. Thus, people who work with the Central or State Government including PSBs, PSUs of Central Government, or have pensionable service, have the provision to avail a special home loan facility. The bank would further consider factors such as age, applicant’s income and repaying capacity, assets and liabilities, cost of proposed house/flat, and so on to determine the loan amount.

State Bank Of India Home Loan Features

All the diverse categories of home loans offered by SBI come with attractive features keeping the convenience of the borrowers in mind. These features include the following:

Transparency: SBI ensures total transparency when it comes to charging interest rates and processing fees. There are no hidden charges on administration fees charged upon applying for a loan.

Easy Repayment: Repayment of home loans is made easier and flexible by SBI through their provision of nil pre-closure charges or penalty. Moreover, the repayment can be done up to 30 years and with lowest equated monthly installments which makes it highly convenient for borrowers to be able to repay the amount.

Flexible Interest Rate: While most banks charge the rate of interest on the annual reducing balance, the interest on loan by SBI is levied on the daily reducing balance. This helps lower the amount of overall interest paid by the borrower.

No Limit on Loan Amount: There is no upper limit on the amount of loan to be taken by the borrower as the bank confirms the amount according to the value of the property to be financed as well as the repaying capacity of the borrower.

Multi-purpose Loan: The home loan provided by SBI can be used not only for buying or constructing a new house or building but also for covering the cost of furnishing a house.

Exclusive Packages: Depending on the individual needs of borrowers, SBI offers well-crafted and flexible loan packages according to the annual salary of the customers. The home loans are also available as an Overdraft.

Special Concession for Women: SBI also offers concession on the rate of interest charged on the various types of home loans for their women borrowers.

Benefits of SBI Bank Home Loans

There are numerous benefits of availing a home loan by SBI instead of approaching other banks. The special features which set the loan packages of SBI apart from their competitors include the following:

Easily Accessible: With about 13000 branches across the nation, SBI has the largest network of branches as compared to other prominent banks. Thus, customers from any region can gain access to the home loan services of SBI. Moreover, the provision of online home loan account platform makes it even more convenient for customers to access the service from the comfort of their homes.

Personalized Services: Another prominent and trademark feature of SBI is their personalized services towards their clients. With an SBI branch in about every city and region, the customers tend to garner a personal relation with the revered customers and the manager ensures to offer optimal guidance to them towards home loan schemes and process of availing them.

Convenient Rates and Charges: SBI is known for offering highly competitive rate of interest on home loans as compared to their competitors. The interest rate starts from 8.30% and is one of the best rates in the market on a home loan. Moreover, there are no hidden charges or penalties charged on the loan.

Low interest rate: The rate of interest on home loan is quite low if you avail it through SBI which makes them a highly recommended option. One can further choose amongst the diverse loan packages catering to customers from different sectors and salary backgrounds. There are also special interest concessions offered to women.

SBI Home Loans Eligibility Criteria

There are certain criteria that one needs to comply by to be able to avail any home loan by SBI bank. These include the following:

Minimum Age: For availing regular home loan, balance transfer of home loan, NRI home loan, or privilege home loan, the minimum age requirement is 18 years. For Flexipay home loan, the minimum age should be 21 years.

Maximum Age: The maximum age required for availing regular home loan and balance transfer of home loan is 70 years, for NRI home loan is 60 years, for Flexipay home loan is 45 years to apply for loan and 70 years for repayment, and for privilege home loan is 75 years.

Minimum Net Income Required: The minimum income of a customer applying for a home loan should be Rs. 25,000 and above.

Minimum Work Experience Required: To ensure stability of job, the minimum work experience for salaried individuals should be 2 years, and the business stability for self employed individuals should be 5 years.

Maximum Loan Amount: The maximum amount of loan that either salaried or self-employed individuals can borrow is Rs. 10 crore.

Residency: Except for the NRI home loans wherein the borrower needs to be a non-resident Indian or of Indian origin, the borrower needs to be an Indian resident while applying for all the other loans.

Documents Required: The basic documents that one needs to submit while applying for any category of home loan by SBI includes identity proof, 3 passport-size photographs, residence proof, bank statement of last 6 months, proof of property, declaration of personal assets and liabilities, income tax proofs, and signature identification from the present banker.

The guarantor also needs to submit certain documents such as 2 passport-size photographs, identity proof, address proof, statement of assets and liabilities, and signature identification from the present banker.

SBI Home Loans Fees and Charges

SBI is known for its conveniently low and transparent processing fee charged on its home loan. For Regular, Balance Transfer, NRI, and Fexiplay Home Loan, the processing fee is 0.35% of the loan amount plus applicable taxes. This makes it minimum amount of Rs. 2000 and maximum amount of Rs. 10,000. There is no processing fee charged on Privilege Home Loans. The other pre-sanction charges include the advocate’s fee for property search and preparing the title investigation report, and the evaluator’s fee for valuation report. The post-sanction charges comprise of the stamp duty payable for loan agreement and mortgage, insurance premium on property, and CERSAI registration fee of Rs 50 + GST up to Rs 5 Lakh limit; and Rs 100 + GST for limits above Rs 5 Lakh.Other than these fees, there are no hidden charges or pre payment penalty levied on these home loans.

SBI Home Loan EMI Calculator

Rather than visiting a SBI bank branch to know details of your pending monthly EMIs, you may now visit their official website and use their EMI calculator to gather the required information. Here’s how you can calculate your EMI based on different categories of loan taken:

Regular Home Loan: Just enter your loan tenure, principal amount, and interest rate levied on it to get to know your EMI, monthly interest, and monthly reducing balance.

Balance Transfer Home Loan: One may easily calculate the benefit of transferring a home loan from any bank to SBI using this EMI calculator. After filling in your current outstanding balance, rate of interest, and remaining repayment term, you will get details on the EMIs outstanding after switching the bank, amount saved upon switching, and amount gained after investing in this recurring deposit.

Maxgain Home Loan: Since this loan type helps one in saving by reducing the amount of interest on home loans, one may calculate this exact amount of savings by filling in their principal amount, interest rate, and tenure.

Flexipay Home Loan: Here, one can fill in the loan amount, tenure, and interest rate to calculate the EMI division that one needs to pay.

Privilege Home Loan: Those borrowers who are looking for details on their loan eligibility, monthly EMIs, monthly interest, and outstanding balance may find the information by filling in their monthly income, desired tenure, current age, moratorium period, and rate of interest.

FAQ's

What is the tenure of a home loan?

Broadly, a home loan is offered for a minimum of 5 years and maximum of 30 years. The tenure depends on the loan amount sanctioned to you and other such factors.

Yes, if you have clean records of timely repayments of your existing home loan then you may borrow an additional top up loan that is equal to the amount already paid on the current loan. The benefits of a top up loan are that the interest rates here are less than that on a personal loan and there is only little paperwork required to avail this loan.

Can I involve joint borrowers for a home loan?

Yes, you may have a maximum of 6 joint borrowers for a home loan. However, the borrowers need to be your family members such as spouse, parents, and so on instead of friends. It is also recommended to have a joint borrower with a good credit history instead of one with a low credit score.

What is the security that I need to provide against the loan?

A mortgage of the property for which the loan is taken is to be provided to the bank. In case one cannot pay the mortgage, any tangible security needs to be provided. The bank ensures the security by levying a certificate through by the Bank’s approved advocate.

Can I pay off my home loan before the tenure ends?

Yes, you may certainly pay off your loan amount earlier than the tenure decided and there would be no pre-payment penalty charged.

Can I get any tax benefits with SBI home loan?

Yes, there is a tax rebate applicable under section 80C of the Income Tax Act.

How long does it take to get a loan sanctioned?

You loan can be sanctioned in just a few days of all the required documents are in place.

Is there any insurance available with home loan?

Yes, SBI offers two types of insurance along with its home loans. One is the Term Insurance by SBI Life Insurance which is a financial coverage to the term life insurance policy holder for a specific time period. The other is Property Insurance offered by SBI General covering private residence from unpredictable damages and natural disasters.

In all, the credibility, goodwill, and reputed service of SBI make it one of the most recommended financial institutions of the country when it comes to applying for a home loan. Their flexible offerings for customers of all strata of the society coupled with no additional charges or hidden fees are designed to ensure the comfort of their clients. You may either visit your nearest SBI bank branch or browse through their official website online to apply for a home loan and garner information on different types of home loans offered by them and the procedure to be followed.

SBI Customer Care Contact Numbers

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SBI

214 NAVI PETH, SURYA PLAZA, LB ROAD, PUNE , MAHARASHTRA 411030

411030

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020-24331995, 24321498

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DIST : PUNE, MAHARASHTRA 411 025

411025

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SBI

BHIGWAN RD., BARAMATI, PUNE - 413102

413102

10:30 AM to 4:30 PM (Monday to Saturday) except on 1st?and 2nd?Saturday of the month